Victor Ugochukwu · Dec 14, 2020 . 5min read
Gold surges all-time high amidst Bitcoin and Ethereum highs
Gold, Bitcoin and Ethereum are considered Safe havens. Gold recently hit the all time high of $1900. There's a increased momentum in cryptocurrencies too
By Shilika · Jul 26, 2020 . 5min read
According to Monex.com, Gold has reached an all-time-high of 1900$/ounce as of the year 2011. On 5th September 2011, the gold prices hit 1,863$. Following which gold showed a sideways trend till March 2013. Further, gold prices have continuous decreased, thus advocating a downward trend. On 20th July, gold surged to an all-time high of 1864.40 in respect to prices of 2011.
With the current economic crisis, due to the Corona pandemic has resulted in economies weakening. Due to businesses being hard struck, the amount of NPA’s in banks has drastically increased resulting in severe losses. In order to overcome the situation, the central banks are continuously pumping in fiat and increasing the lending interest rate in order to bring about financial stability in the country. However, on the contrary, it is leading to severe inflation resulting in lowering the value of money. In this crisis, individuals are moving towards other financial instruments in order to safeguard their funds from the exposure to inflation. Thus commodities like Gold and Silver have gained momentum as a hedge to inflation due to its limited supply. Individuals and economy are also considering cryptocurrencies as an option.
Thus over the months, there has been increased participation in the cryptocurrency markets. According to Coinmarketcap, Bitcoin surged to $9,964 on 26th July 2020.
However, Ethereum crossed to $309 since June 2019 last year in which it soared to $312. Currently is the second most valuable cryptocurrency so far.
In 2020, Bitcoin and Ethereum levelled up by 36.04 & 144.40 respectively. There is a possibility that it might continue an upwards trend with its adoption worldwide.